- 14 January 2019
- Transport / Logistics Services
Middle Eastern express delivery and logistics player Aramex has acquired the Saudi Arabian company Saudi TAL for Commerce and Contract Company Ltd (“Saudi TAL”), for approximately US $80 million.
The acquisition is planned to open more avenues for growth in Saudi Arabia, which is the Dubai based logistics company’s biggest single market in the Gulf region.
According to Aramex this should increase its annual net profit by US $6 million before accounting for loan costs, and will be reflected in Q1 of 2019.
Forty percent of the acquisition is to be paid for in a five year bank loan, with the rest financed on the company’s own balance sheet.
Commenting on the acquisition, Bashar Obeid, Chief Executive Officer of Aramex said: “Saudi Arabia is Aramex’s largest market in the Middle East and holds significant growth potential for the business. Our acquisition of Saudi TAL supports Saudi Arabia’s Vision 2030, which aims to encourage private sector investment to diversify the economy. This acquisition is also in line with our strategy to have leaner and more efficient operations in all markets we operate in, and will allow us to focus on upgrading last-mile delivery through innovative solutions, which will ultimately result in an enhanced customer experience.”